A critical analysis of Saudi Arabian law relating to disclosure as part of corporate governance

Abstract

This research investigates whether or not current corporate disclosure laws and regulations in Saudi Arabia are in need of reform, and, if so, what the nature of these reforms should be. To answer this, the thesis explores the theoretical nature of disclosure by focussing on the development of disclosure and particularly the disclosure of corporate governance related information. Additionally, it considers the arguments in favour of, and against, the principles of disclosure. The research engages in an in-depth exploration of current disclosure laws and regulations in Saudi Arabia. The research found that there is a dearth of literature about the extent of the effectiveness of disclosure regulations as they are implemented in Saudi Arabia. This led to supplementing this doctrinal study by undertaking an empirical study of disclosure regulations in Saudi Arabia. The empirical study draws on interviews conducted with twenty five stakeholders in Saudi Arabia, with the intention of addressing, from the perspective of the participants who took part in interviews, what are the problems of the current regime and how they might be resolved. Prior to suggesting recommendations for change, the research discusses current disclosure rules and regulations in the UK, with the aim of discovering what Saudi Arabia can learn from the rules adopted in the UK. The research posits the idea that there is a need for a reform of the corporate governance disclosure system in Saudi Arabia, and, in this respect, a number of recommendations are made.